Eurozone, EU economies shrink by 0.2% in 2nd quarter
Tue Aug 14, 2012 12:33PM
The eurozone would officially be in recession if it was not for Europe's biggest economy, Germany’s economic growth of 0.3 percent in the second quarter.Among the eurozone's biggest contractions, Portugal's GDP shrank by 1.2 percent, Cyprus recorded a 0.8 percent contraction and Italy was down 0.7 percent. Various eurozone member states have been struggling with deep economic stagnancy since the bloc’s financial crisis began roughly five years ago.
Greece, Spain, Italy, Cyprus and Portugal are all in recession and all five are receiving financial assistance from European bailout funds.This is while the number of people unemployed across the 17 countries that share the euro currency hit a record high in June. The figures released by the Eurostat, showed that 17.801 million people were out of work in the eurozone in June.
The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.MR/PG